Downsizer Superannuation Contributions
- 19 February 2018
From 1 July 2018 an individual aged 65 or older will be allowed to contribute up to $300,000 into superannuation from the proceeds of selling a home that has been owned for the past 10 or more years. The contribution is known as a downsizer superannuation contribution (DSC). A DSC can be made without reference to the age test, the work test and the 1.6m total superannuation balance limit.
Requirements in respect of a DSC are as follows:
- Individual is 65 years old or over at the time of the contribution
- The amount contributed is from the proceeds of selling a qualifying dwelling in Australia where the exchange of contracts for sale occurs on or after 1 July 2018
- The 10 year ownership condition is met prior to the sale
- A gain or loss on disposal of the dwelling must have qualified for the main residence CGT exemption in whole or part
- A DSC must be made within 90 days of receiving the proceeds of sale, which are usually received on the date of settlement
- No previous downsizer contribution has been made
However, you should be aware that making a downsizer contribution into superannuation may adversely impact on your centrelink entitlements as a result of you having a greater level of superannuation assets.
Further information on the new downsizer superannuation contribution contribution is available on the ATO website here.
Credit: Ivy Feng